Your client just checked their credit score and it was 649 with TransUnion, 618 with Equifax and 640 with Experian. However, they get to the auto dealership and their scores are 50 points less. Why? Well, there is this thing called: “Auto enhanced credit score.”

Yes, it might be news to many of you to find out that there is a auto enhanced credit score generated to find out your “auto loan worthiness” is different from FICO score.

Most people, like you, are aware that you have a FICO score. And, you might even know the factors (payment history, average age of accounts, etc.) that affect your FICO scores. You might be surprised, however, to find out that there is a difference between standard FICO scores and “auto enhanced credit score”.

What is an auto enhanced FICO credit score?

It is called an auto enhanced credit score or enhanced beacon score.  Not only is it calculated differently, but also different things affect it. For example, revolving accounts (like credit cards) have the largest impact on your FICO score whereas your past payment history on auto loans or leases tend to influence your auto enhanced credit score (like an auto enhanced Beacon Score).

Depending on the existence and quality of your previous auto loan or lease history, there is not much you can do to increase this score other than remove debt or enhance it with new authorize users tradelines.  Therefore before you attempt to get a car loan here are a few questions one should ask in their effort to get approved for an auto loan:

• Have you ever had an auto loan before?
• Do you have any late payments on your previous auto loans?
• Have you ever had your vehicle repossessed?
• Have you had an auto loan account sent to collections?

If you answered “yes” to at least one out of the last 3 questions, then you may or may not benefit from adding tradelines but will have to build your auto history and pay a higher interest rate. Credit repair maybe your only option when dealing with this option.